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The extent and nature of welfare provision (1918-39) - Coggle Diagram
The extent and nature of welfare provision (1918-39)
Unemployment
Men could not rely on the old Poor Law - alternative was to hand out dole money as this was paid out of taxation
Although it was feared that this will upset the budget
The war undermined this scheme because 3.5m troops were not eligible for the benefits it provided because they had not worked in the specified industries or not contributed enough
Poor Law was a system of relief for the poor - had to prove you were poor (humiliating)
A self-funding National INsurance scheme with benefits paid from members was seen as the ideal solution and was implemented by the 1911 National Insurance Act
Interwar governments wanted to support the unemployed but wanted to balance the books
New Unemployment Insurance Act 1920 was introduced - increasing number of workers covered by insurance would make the scheme self-funding
It peaked at 3m in the early 1930s
Was passed in 1920 when the effects of the war were beginning to bite
Unemployment was never below 1 million between end of 1920 and mid 1940
1921 the Government made payments which were made through worker contributions - Poor Law could not cope with the scale of the problem
A seeking work test was implemented in March 1921 - by 1930 3m claims were rejected
1929 Local Government Act and 1934 Unemployment Act was set up which replaced the old Poor Law
A means test was used by the Public Assistance Committees - means test was hated as it was an invasion of privacy
Unemployment Act provided 26 weeks of benefits to 14.5m workers who paid into the scheme. Unemployment Assistance Board helped those with no entitlement to insurance benefits
By 1937, UAB assisted 1m people on a national means basis
Pensions
Self-employed workers of both sexes could join the scheme in 1937
Lack of tinkering with pension provision compared to the unemployment payments suggests a good job in drafting the statute
It reflects the huge pressure placed on interwar governments by unemployment and the limited options they saw to deal with this problem
Funded by a compulsory contribution rather than taxation
It also provided a pension for widows, their children and orphans
Neville Chamberlain introduced the 1925 Widows, Orphans and Old Age Contributory Pensions Act which provided a pension of 10 shillings a week for those aged 65-79
Means tested and did not support the widows and children of the deceased
State pensions were introduced in the 1908 Pensions Act which was popular with the eligible over 70s
Unpopular with the Labour Party as it penalised the poor but the tough economic conditions led to it's general acceptance
Housing
600,000 houses were demanded but only 213,000 houses were built before the recession
Housing shortage became worse with a shortfall of 822,000 houses in 1923 - young married couples lived with their parents
1919 Housing and Town Planning Act aimed to empower local authorities to use central govt funds to meet housinf needs
Conservative and Labour Housing Acts 1923 and 1924 used subsides to encourage the construction of private and state-owned houses
Government promised returning soldiers a home fit for heroes
In combination with the 1930 Housing Act, these acts promoted a greater deal of house building. 4m homes were built between 1919 and 1940
In 1899 only 25% of houses had a flushing toilet in Manchester, by 1914 98% of houses had one
1940, 1/3 of houses had been built since 1918
Major improvements in urban living standards was achieved by the mains watters and sewerage to homes
Quality of housing improved but not all projects were not thought through
There were concerns about the slums promoting crime and disease
Becontree estate (25,800 houses and flats) had a lack of local jobs and was avoided due to a new ford Factory opening in 1931
Local and national government made efforts to improve housing
New home stimulated demand for other things like furniture